3 Reliable Dividend Stocks Yielding Up To 4.9%

As global markets react to the recent U.S. election results and a Federal Reserve rate cut, investors are seeing major indices like the S&P 500 and Nasdaq Composite reach record highs, driven by expectations of growth-friendly policies. Amidst these developments, dividend stocks remain an attractive option for those seeking income stability in a fluctuating market environment. A good dividend stock typically offers consistent payouts and financial resilience, aligning well with current investor sentiment focused on balancing growth prospects with reliable income streams.

Top 10 Dividend Stocks

Name	Dividend Yield	Dividend Rating
Tsubakimoto Chain (TSE:6371)	4.18%	★★★★★★
Wuliangye YibinLtd (SZSE:000858)	3.04%	★★★★★★
Globeride (TSE:7990)	4.10%	★★★★★★
Guangxi LiuYao Group (SHSE:603368)	3.25%	★★★★★★
GakkyushaLtd (TSE:9769)	4.54%	★★★★★★
FALCO HOLDINGS (TSE:4671)	6.77%	★★★★★★
Business Brain Showa-Ota (TSE:9658)	3.87%	★★★★★★
CAC Holdings (TSE:4725)	4.52%	★★★★★★
E J Holdings (TSE:2153)	3.86%	★★★★★★
DoshishaLtd (TSE:7483)	3.86%	★★★★★★

Click here to see the full list of 1939 stocks from our Top Dividend Stocks screener.

Here's a peek at a few of the choices from the screener.

Okura Industrial (TSE:4221)

Simply Wall St Dividend Rating: ★★★★☆☆

Overview: Okura Industrial Co., Ltd. manufactures and sells polyethylene and polypropylene products in Japan, with a market cap of ¥33.15 billion.

Operations: Okura Industrial Co., Ltd.'s revenue is primarily derived from its Synthetic Resin Business, which accounts for ¥50.61 billion, followed by the Building Materials Business at ¥12.31 billion and New Materials at ¥14.33 million.

Dividend Yield: 3.7%

Okura Industrial's dividend payments have been stable and reliable over the past decade, with a reasonable payout ratio of 45%, indicating coverage by earnings. However, dividends are not supported by free cash flows, raising sustainability concerns. The dividend yield of 3.69% is slightly below the top tier in Japan. Despite these issues, the stock trades at a favorable P/E ratio of 8.1x compared to the market average of 13.4x, suggesting good relative value for investors seeking dividends amidst recent share buybacks worth ¥543.99 million completed in September 2024.

• Delve into the full analysis dividend report here for a deeper understanding of Okura Industrial.
• According our valuation report, there's an indication that Okura Industrial's share price might be on the cheaper side.

Toyo Tire (TSE:5105)

Simply Wall St Dividend Rating: ★★★★★☆

Overview: Toyo Tire Corporation manufactures and sells tires in Japan, North America, and internationally, with a market cap of ¥336.13 billion.

Operations: Toyo Tire Corporation's revenue primarily comes from its Tire Business, which generated ¥514.21 billion, and its Automobile Parts Business, which contributed ¥46.66 billion.

Dividend Yield: 4.5%

Toyo Tire's dividend yield is in the top 25% of Japanese market payers, supported by a low payout ratio of 23.5%, indicating strong coverage by earnings and cash flows. Despite this, its dividend history has been volatile over the past decade. The stock trades at a significant discount to its estimated fair value, offering good relative value compared to peers. Recent board meetings suggest potential revisions to financial and dividend forecasts due to business performance trends.

• Get an in-depth perspective on Toyo Tire's performance by reading our dividend report here.
• Insights from our recent valuation report point to the potential undervaluation of Toyo Tire shares in the market.

San-Ai Obbli (TSE:8097)

Simply Wall St Dividend Rating: ★★★★★★

Overview: San-Ai Obbli Co., Ltd. operates in the wholesale and retail sectors of petroleum products and liquefied petroleum gas, with a market cap of ¥123.92 billion.

Operations: San-Ai Obbli Co., Ltd. generates revenue through its activities in the wholesale and retail distribution of petroleum products and liquefied petroleum gas.

Dividend Yield: 4.9%

San-Ai Obbli offers an attractive dividend yield of 4.93%, placing it in the top 25% of Japanese dividend payers, with stable and growing dividends over the past decade. The company's payout ratios—46.1% from earnings and 35.7% from cash flows—suggest sustainable coverage. Trading at a significant discount to its estimated fair value, San-Ai Obbli has recently completed a share buyback program worth ¥1,960 million, enhancing capital flexibility amid market changes.

• Click here to discover the nuances of San-Ai Obbli with our detailed analytical dividend report.
• Our expertly prepared valuation report San-Ai Obbli implies its share price may be lower than expected.

Seize The Opportunity

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Want To Explore Some Alternatives?

• Explore high-performing small cap companies that haven't yet garnered significant analyst attention.
• Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management.
• Find companies with promising cash flow potential yet trading below their fair value.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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